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US-based climate FinTech platform Nithio has launched the Fund for Utility and E-mobility Lending (FUEL), a $150 million senior secured debt fund. It will finance commercial e-mobility businesses and supporting infrastructure across Sub-Saharan Africa.
The company is starting the fundraising process now. It is targeting a $100 million first close in 2027, toward the full $150 million target.
“Recent FAIR investments in the electric mobility sector have demonstrated both the commercial opportunity and the significant financing gap facing the industry. As the sector scales, Nithio sees a need for a dedicated African debt vehicle capable of providing capital to e-mobility businesses,” the firm mentioned in the press release.
Founded in 2018, Nithio is a climate FinTech platform that invests in clean energy companies and helps others allocate capital to climate solutions. According to the firm, it is powered by its Risk Analytics Engine, and leverages customer repayment data, geospatial data and AI to standardise credit risk assessment and inform investment decisions.
Nithio’s existing investment vehicle, FAIR (Facility for Adaptation, Inclusion, and Resilience), is a blended-finance, open-ended vehicle that provides financing to companies offering clean energy solutions to households and small enterprises in Africa.
In January 2024, FMO, the Dutch Entrepreneurial Development Bank, provided Nithio with $10 million for FAIR; in December 2023, Nithio secured a €10 million investment from the Danish Investment Fund for Developing Countries (IFU) for its investment vehicle.
Nithio states that FUEL builds on the success of FAIR, which has committed about $55 million to 18 borrowers. Its recent FAIR investments in electric mobility include one in MAX in West Africa.
The platform also runs its own risk analytics, built on more than 100 million payment records across 19 Sub-Saharan African markets. It says this experience and data led it to expand into e-mobility with FUEL.
FUEL will provide senior secured loans of $2 million to $15 million. The loans will be backed by hard assets and cash flows. Borrowers can include fleet operators, fleet finance providers, charging and battery-swapping infrastructure companies, energy and site providers, vehicle manufacturers and related service providers. A selective C&I energy sleeve will provide additional portfolio diversification.
Earlier this year, the company, through its FAIR vehicle, closed a $7 million senior debt working capital facility with Spiro Mobility. In June, Nithio was appointed as the Back-Up Servicer for Sun King’s financing program for receivables, marking an expansion of its role into operational support for energy access projects.
